I think it’s great that Oprah Winfrey took a 10% stake in Weight Watchers…
The company – 75% off its highs – needed the news.
But it’ll take more than the Oprah Effect to keep this stock moving higher.
Poor sales, increased competition, and new weight tools could weight heavily on the stock, near-term. While the stock did managed a 105% move on the day, I think it’s a short-lived move that’ll end once the news is fully disseminated.
Without risking the house, take a small position (2 to 5 contracts at most) in a Weight Watchers (WTW) December 2015 13 put up to $2.40.
Hold all other positions. After closing some nice wins recently, we hold some losses. But we see no reason to exit any at this point.
We’ll talk again shortly. Until then, take good care…
Ian L. Cooper
Rapid Retirement System